Norman Broadbent earnings 'comfortably ahead' of board expectations

(Sharecast News) - Norman Broadbent reported a record financial performance for 2025 on Thursday, with sharp growth in fees, profitability and cash generation, as the business completed a multi-year turnaround despite challenging market conditions.

For the year ended 31 December, net fee income rose 32% to �12.3m, while underlying EBITDA increased more than fourfold to �1.3m from �0.3m a year earlier.

The AIM-traded firm said its underlying EBITDA margin expanded to 11.0%, compared with 3.3% in 2024, as the group returned to profitability with a profit before tax of �0.7m, compared with a loss of �0.2m in the prior year.

Year-end net cash increased to �1.5m, a �1.4m improvement on 2024, reflecting the cash-generative nature of the business as earnings strengthened.

Fourth-quarter performance was particularly strong, with net fee income of �3.3m, up �0.8m year on year and the highest quarterly outturn of the year.

Executive search accounted for 87% of fourth-quarter net fee income, with placement activity providing the main driver of growth.

Chief executive Kevin Davidson said the company had delivered another strong performance in the final quarter, closing the year with underlying EBITDA of �1.3m, "comfortably ahead of board expectations", despite persistent market challenges.

He said the results marked the completion of the turnaround phase of the group's strategy and delivered on the medium-term EBITDA target set four years ago.

Davidson added that the group had built a stronger platform to support the next phase of growth, with targeted investment in headcount and selective acquisitions remaining central to its plans.

He said the board remained disciplined in executing its strategy and confident in its ability to grow the business and build shareholder value despite a challenging market backdrop.

At 1531 GMT, shares in Norman Broadbent were up 6.24% at 247p.

Reporting by Josh White for Sharecast.com.